The rental vacancy rate in Houston, Texas peaked in 2010 at 13.76%. Although the percentage has been slowly dropping since then, rental vacancy rates are still high in Houston compared to the rest of the United States.
For this reason, landlords should try to keep good tenants for as long as they want to stay. You can offer lease renewals to tenants before their lease expires.
Keep reading to learn FAQs about lease renewals and their answers.
What Do You Need to Include in Lease Renewals?
Landlords need to include specific information on lease renewals. Some of the most important details to include are:
- Property address
- Tenant name
- Date the letter was sent
- Landlord contact information
If the lease is not renewed, confirm when the tenant needs to move out. If a new lease needs to be signed, confirm any updates with the tenant. It would also be smart to discuss the new lease in person.
You can also choose to switch to a month-to-month rental. Explain what this means for the tenant if this is the agreement you both choose.
The information you need to provide will depend on the specific situation.
How Much Notice Should I Give?
The landlord or property manager is responsible for notifying tenants of their lease expiration or providing them with a renewal offer. The duration period will depend on the state.
A good rule of thumb is to give tenants a 60-day notice. However, in Texas, you need to provide a lease renewal at least 30 days prior to the end of the fixed-term lease.
If the lease is month to month, you'll need to send the renewal letter at least 30 days from the next payment date.
This provides you enough time to find a new tenant if they don't accept the lease renewal offer.
Do You Have to Offer Lease Renewals?
Landlords don't have to offer lease renewals for tenants. In most states, landlords don't need to provide a reason for why they are choosing not to renew a lease either.
A tenant that is offered a lease renewal also doesn't have to provide a reason for nonrenewal.
Since a lease is a contract with a confirmed start and end date, the contract can be completed without reasoning for non-renewal from either party.
Even though this is the case, it's not illegal for landlords to ask tenants for their reasons for non-renewal. If tenants are willing to provide answers, landlords can learn how they can better their property.
In some cases, tenants move for circumstances outside of a landlord's control. For example, a tenant may choose non-renewal because they are moving from the area or received a job with better pay.
Lease Renewing Process Explained
Lease renewals are important for landlords and tenants to understand. If you're new to being a landlord, these FAQs on lease renewals can help explain the lease renewing process.
To avoid problems with lease renewals and other landlord requirements, hire a rental property management team. Contact us today to learn how we can help you.
